WOw… The guy could write a book " The Complete Guide to Option Selling"
BUT
forgot to put a stop
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This is why you should never sell naked options.
Let this be a lesson here to all retail option sellers.
He wrote a book about option selling. And its a hedge fund. I dont think they would have sold naked options. Volatility is a bitch. When volatility decides to strike, different strikes behave differently, ATM options spread widens, and suddenly there are no buyers or sellers of OTM, ITM.
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Well, in this case they sold naked options on natgas and guess what it had the highest vol intraday and they blew up.
And these were so called experts on option selling and even wrote a book on it.
you always “believe” it wont happen to me , until it does.
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